Which bank is best for gold loan?

When it comes to a secured loan or a personal loan with collateral, the gold loan is treated as one of the best with collateral and one can easily find it without any delay in the approval process. There are enormous banks and NBFCs which provide gold loans under the vigilance of the Reserve Bank of India and they are registered as lending agencies for the gold loans. It has enormous features and benefits that allow you to decide which bank is best for gold loan and to avail of the gold loan easily. The borrowing process is accomplished in a few steps where you need to be available with the gold as collateral and once after verifying the worth or valuation of gold, your loan amount is approved.

List of the best banks for gold loans

Currently, almost all the nationalized, registered, and rural banks along with NBFCs provide gold loans that you can apply for a gold loan to accomplish various household needs. However, you can choose the lender after verifying the interest and tenure. Some prominent banks that provide hassle-free loan services are as follows.

• Muthoot Fin Corp
• Manappuram Finance
• HDFC Bank
• State Bank of India (SBI)
• ICICI Bank
• Punjab National Bank
• Bank of Baroda

Apart from them, there are rural banks that also provide personal loan or gold loans, where it is essential to check whether are they registered or not. And finally, you can be sure which bank is best for a gold loan.

Steps to apply for the gold loan   

Apply for the gold loan: After choosing the lenders or deciding which bank is best for gold loan, you can apply online for the gold loan. Where you can enter the loan amount as per the eligibility and the net worth of the gold.

Get the call from the lender: After the application form, get the response from the lenders who will clear all the terms and conditions and other policies pertaining to the gold loan and finally, you can be assured to borrow.    

Visit the branch to get a valuation: Once you are acquainted with the terms and conditions, you can get the true value of the gold, which is done one the basis of weight and purity. And finally, you will be able to get the loan.

Get the funds in the Account: Finally, after the approval, you can apply for a personal loan or gold loan based on the collateral i.e., the gold.

Features that can help you decide the best banks for a gold loan

Lower Interest

The interest rate must be lower for the gold loan and since you are looking for the secured loan, you can go for the lower interest. And, therefore, it will also help you decide which bank is best for gold loan. 

Flexible tenure

The banks providing gold loans facilitate flexible tenure which may be for short-term or long-term, and once you are assured of the tenure, you can decide which bank is best for gold loan

Less documentation

Since there is no fear of repayment as the lenders provide gold loans based on collateral, there are no requirements for more documents. however, as per the guidelines of the Reserve Bank of India, you must submit the KYC to ensure transparency.

Conclusion

Since all the banks provide gold loans after satisfactory verification and valuation of your gold, you can choose the best bank as per the terms and conditions and their policies for the interest, tenure, and repayment policies and finally, with the parameters, you can choose the best banks for a gold loan. So, ultimately you can choose the gold loan for the financial requirements.